Duty of Care & Why it’s Your Responsibility

Duty of Care

Offering “Duty of Care” – It’s Your Responsibility!

When was the last time you made a purchase and right at that pivotal moment when you agreed to buy the sales representative asked you the one question.

“Would you like to purchase the extended warranty that comes along with this product?”

Sure, it is very common. Sometimes we may even feel a bit manipulated by the sales process. However, have you ever stopped and wondered why the retailer, manufacturer or wholesaler attempted to add these extras to the sale? Obviously, one of the reasons is that the additional items make a simple low margin invoice appear rather tantalising with more line items and much more profit. Another reason, is that the product in question has a price point in the market. Therefore the marketing strategy is to offer the bare bones basic product, at a price competitive advantage. At that point, the client can then decide what add-on he or she may like.
Of course the other reason is that some of the additional add-on items offered are crucial to the item. The add-on supports the operation, longevity, and functioning of the product or article being purchased.

Here are some examples when we use the term “Crucial“:

The Big Bad Power Surge

 Flat screen TV’s are offered with a power surge protector – the retailer is suggesting to the consumer that these items do fail due to power surges from our electricity networks. What would happen if you purchased a TV, took it home and then found that after 24 hours it failed due to a power surge? You would not be happy with the retailer. This is the reason that we call these add-on items,  “Duty of Care” items.

Vroom Vroom

When you purchase a motor vehicle the salesperson hands you over to an aftermarket professional, who will attempt to sell you thousands of dollars worth of “Duty of Care” items. Once again, some of these items you will certainly be happy to have purchased. Items such as paint coatings that will prolong the life and appearance of the paintwork and more. Remember, I mentioned that items are made to be sold at a price point, and rather than inflate the price with the Rolls Royce quality, we allow the consumer to make the choice.

The Maintenance Shopping Spree

Booking your vehicle in for service is very simple. Although, it’s a secret shopping spree. A routine service becomes a shopping spree, what sounds like an attempt to take more money out of your pocket is really a “duty of care” that the servicing dealer is obligated to offer you. They will offer radiator flushes, wheel alignments, and in most cases, the services being offered will save you money in the long run.

Decide

 What additional “add-on” items you have to offer you clients, put a price point on these additional items. Train your staff on how these additional “Duty of Care” items can be offered, and last but not least, make sure your staff are convincing when presenting the “Duty of Care” items.

 Don’t just tell a client that you recommend that they buy the duty of care items. Explain what is in it for them. Will they save money? Will it prolong the life of the product? You need to be specific with your client! After you have asked the client if they would like to add the duty of care items to the sale, wait for the client’s response. Sometimes you may need to respond to the client with a supporting statement to assist them make a decision. Duty of Care items are a necessary part of the sales process. The level of attention you give is an important aspect of sales and can make a huge difference to your customers perception of your company as well as your profit margins!

Duty of Care

George Manolis is a speaker and author who delivers public and in-house training programs in sales all around Australia. Contact him at 1300 791 571 or via email: george@sfsi.com.au. You may also view the comprehensive range of sales tools which include training videos for download. Visit www.salesforce.au.com